Friday, July 10, 2015

Postmedia reports major drop in revenues, Conrad Black scolds leaders

The Globe's James Bradshaw reports:
After reporting yet another quarter of steep losses, Postmedia Network Canada Corp.’s leaders were publicly scolded Thursday by one of the company’s high-profile investors – Conrad Black.
The former proprietor of some of Postmedia’s newspapers, who is now a shareholder and writes a column for the flagship National Post, joined the usually tame conference call for analysts to urge for a re-investment in journalistic quality – while also lamenting the lack of trading in the company’s stock.
On Thursday morning, Postmedia reported its first public numbers since it acquired 175 Sun Media newspapers, specialty publications and digital assets from Quebecor Inc. for $316-million in April. Excluding the new assets, the company reported a 13.5-per-cent drop in revenues, including another year-over-year plunge in print advertising revenues.

Mr. Black argued that Postmedia’s only option is to spend its way out of decline by investing in stronger content.

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